Mortgage products 'enjoying longer shelf life'

Date:Wednesday 5th May 2010
Author: Max Freedman

New research has found lenders are offering individual mortgage deals for a longer period of time, suggesting some sectors of the housing market have "become static".

A study carried out by price comparison website Moneyfacts revealed the average shelf life of mortgage products now stands at 30 days, the longest median period since August 2007.

Spokesperson Darren Cook claimed financial institutions are currently fighting for "limited business", adding: "Many smaller lenders are unable to follow in the footsteps of some of the larger competitive players and have no alternative but to keep wide margins."

Mr Cook also warned that borrowers and lenders alike are hesitant to take risks given the current weakness of the British economic recovery and suggested uncertainty surrounding this week's general election could also be hampering activity.

Figures released by the Bank of England this week showed a slight increase in the amount of credit being lent to individuals.